Trust Loan Agreements (terms 5-10 years) what are our legal options? (no BG please)

[lowpaidworker]

Glad to hear you got out. Do not take the advice of your employer, who I guess is part of the scheme you was in ? Speak to an independent tax specialist (there are at least 2 regular ones who post on here and have lots of knowledge around this area). Like I say, there are schemes out there that may well escape the loan charge for now, but I very much doubt they will survive the ongoing onslaught we are seeing from HMRC. Please seek professional advice.

many thanks !

Do you know who the tax specialists are. Just want to know if I need to prepare for a hefty charge come 2019 as I agree with you and am not relying on the words of a former employer.

[regron]

many thanks !

Do you know who the tax specialists are. Just want to know if I need to prepare for a hefty charge come 2019 as I agree with you and am not relying on the words of a former employer.

Not allowed to provide precise contact details (Forum Rules), but if you google Graham Webber tax and Phil Manley tax, you should get the information you are after.

[Loan Ranger]

Ive just be told that loans made direct by your employer are not caught out by the 2019 Loan Charge?

Is this true... anyone know ?

Yes, I believe that's true. I think only loans provided by a 3rd party are caught.

[Mrcurrey]

Yes, I believe that's true. I think only loans provided by a 3rd party are caught.

Says who??

[Loan Ranger]

Says who??

Not who but what ie. the DR legislation itself.

https://www.taxation.co.uk/Articles/...n-charge-rules

"The 5 April 2019 loan charge will apply to third-party employment loans..."

[RickG]

What about loans made by your employer transferred to a trust?

[WTFH]

What about loans made by your employer transferred to a trust?

Is the employer your limited company, an umbrella or something else?
Is the trust in your name?
Did funds come out of the trust to you in such a way that you didn't pay (much) tax on them?

[Loan Ranger]

What about loans made by your employer transferred to a trust?

To be clear, are you saying the employer loaned the money to employees and then somehow transferred the loans to a trust?

The most common structure caught by the DR rules is where the employer put money in a trust, and the trust (3rd party) loaned it to the employees.

[RickG]

To be clear, are you saying the employer loaned the money to employees and then somehow transferred the loans to a trust?

Correct.

I'm no expert I'm afraid, but I have read the agreement thoroughly, and the loan is made from the Ltd company (now dissolved) and the loan is transferred to a trust setup by the Ltd company.

[Mrcurrey]

Correct.

I'm no expert I'm afraid, but I have read the agreement thoroughly, and the loan is made from the Ltd company (now dissolved) and the loan is transferred to a trust setup by the Ltd company.

I'm exactly same as rick!!!

Ltd company sent me the money. And then Set up a trust. I think I'm supposed to pay back the trust . It's all confusing